Tesco: Strengths, Weaknesses, Opportunities, and Threats - Essay Example

? Tesco SWOT analysis of Tesco The strengths and weaknesses comprise of internal conditions that determine thesuccess of the business enterprise. On the other hand, opportunities and threats refer to external conditions that shape an organization’s success. A study of Tesco reveals some of the strengths, weaknesses, opportunities, and threats that determine the success of the organization. One of the notable strength of Tesco lies in the way the company treats it customers. The structure of the company has enabled Tesco to gain trust of the customers to the extent that the company can collect personal details regarding their customers. The personal details play a crucial role as the company can be able to link them with the purchases made in the stores. Such strength indicates that the company values their customers since they inquire for personal details about the customers. Another significant strength of Tesco lies in its workforce; the employees of the organization tend to be friendly and treat the customers warmly (John 2004, p. 105). The global reach of Tesco can also be regarded as a remarkable strength of the company; Tesco has its stores spread all over several countries, and this can be regarded as a significant achievement. The spread of the stores enables the organization to secure large customer base compared to its competitors. Reasonable prices can also be regarded as strength of Tesco; this makes the customers to flock the stores of the organization (John 2004, p. 110). Offering best and affordable prices have been central to the organization’s success. The success of Tesco can be attributed to its strengths in terms of the wide range of products dealt with by the organization. The organization spread its products to include consumer products such as CD players, music players, computers, as well as other products such as hot cakes. One of the weaknesses of the company includes that fact that Tesco has not managed to make its marketing plan better. For example, the company has not managed to introduce the best ways through which it can reach its customers. A weakness of the organization also lies in the products sold by the organization. Some of the products Tesco sells include food products, which may expire; for example, products such as fruits, vegetables, salads, and sandwiches have to be sold before the expiry date (John 2004, p. 113). A look at the opportunities of Tesco indicates that the company has embraced the use of new technology in its operations. Tesco has seized the opportunities accorded by new technology as the company has adopted mass customization as a marketing strategy. The organization also offers both online and in-store shopping; therefore, customers can purchase the commodities they want at the comfort of their homes. The organization also gets favored by the EU laws due to its notable presence in the UK (John 2004, p. 118). One of the threats of the organization stems from the competition by companies such as Wal-Mart and Sainsbury. The company also faces the threat of venturing in new markets where other competitors might have established a strong market base. Possible Solutions In order to counter the challenges faced by the organization, Tesco can adopt several changes in terms of its operations. First, the organization should strive towards improving its marketing plan and making it better than it is. For example, the company can introduce virtual stores, which will enable quick delivery of products to customers. This can play a crucial role in enhancing faster delivery of the products and increasing the organization’s sales (Rothwell 1998, p. 3). Another change that Tesco needs to institute includes looking for reliable suppliers in Denmark who will supply vegetables, fresh fruits, milk, bread, and meat. This stems from the fact that it may be extremely impossible to import such products from the United Kingdom owing to the high costs, which would be incurred by suppliers. Tesco has to adapt to the various demands that come with the opening of new stores. As such, the company needs to have a clear understanding of the customers, especially in the new areas where it wants to open branches. There is a need that Tesco changes as the market changes. Therefore, the company should make enormous investments in new technologies that enhance smooth running of the business. Another area that the organization needs to invest in includes training and development of its workforce. Investing in training will enable the employees gain the required skills and knowledge so as to accomplish the tasks assigned to them effectively. Training will increase the employees’ sense of ownership of the organization and businesses of the organization (Rothwell 1998, p. 5). Moreover, training enables employees to become more productive, organized, and flexible; consequently, they can meet the needs of the customers. Employee training and development can be regarded as a central aspect in the success of any organization. Tesco should also invest heavily in market research in order to establish the target markets for the final products of the company. The likely benefits that the company would reap from instituting the named solutions include the ability to reach out to a variety of customers. Besides, the organization will stand a chance to expand its market share and outdo its competitors. Adopting new technologies will play a crucial role in enhancing the operations of the organization. Market research will enable the organization to identify the likely consumers of their products and establish changes that should be adopted to make products better. The appropriate actions to improve the short term and long term performance of Tesco include adopting a pricing strategy, which will give the organization a competitive edge in the market. Tesco should charge its customers affordable prices; this will ensure that the company succeeds in maintaining their customers and attracting new customers (Rothwell 1998, p. 6). The organization should also provide customers with high quality goods. As a result, customers will gain trust in the products offered by Tesco and have trust that the products are genuine. The organization can also improve its performance by embracing corporate social responsibility. This enhances the participation of the organization in affairs of the society. As a result, the organization will gain many customers and be more successful than the competitors (Rothwell 1998, p. 7). References List John, F. (2004). Logistics and Retail Management: Insights into Current Practice and Trends, New York, Kogan Page Publisher. pp. 101-120. Rothwell, W. J. (1998). Improving Performance in Organizations: Eleven Case Studies from the Real World of Training, New York, American Society for Training and Development. pp. 2-10. Read More